Nice find!
This app has some seriously good potential. They already have most of the functionality the average user would need. It can only get better. Props to the students who are working on this - it's a really good project.
And Microsoft's sponsoring an open-source effort! You don't see that happening everyday.

With the release of Paint.NET v2.0, the students' website has literally been flooded with web traffic! This isn't necessarily a bad thing, except for the poor servers that are handling it. Got this e-mail from one of the guys:

"I received a phone call this morning from the campus IT department asking why the web server output over 75GB in the duration of one day(with 1GB inbound). [unimportant stuff cut out]

This does, however, beckon the need to relocate or mirror PDN somewhere else. Mirror suggestions anyone?

For the time being, or at least until the "new car smell" wears off, I have asked the campus to throttle 500K/sec or roughly 42GB per day.

[unimportant stuff cut out] I'll check on Monday to see if traffic levels have return to normal, and if so, I'll lift the bandwidth restrictions."

So it looks like we need to find a mirror or two for the short term. Thanks to everybody for your overwhelming interest in Paint.NET! The servers are literally getting over 30x the amount of traffic that they normally do. Please be patient with us while we figure out our hosting situation.

* Magic wand is back and it works great
* Paint bucket now fills with brush patterns
* Much higher quality rendering when zoomed-out
* Background layer is no longer "locked"
* Selections work better now, especially when zoomed in
* Many bug fixes
* Faster startup performance

* Many actions that used to reset the zoom to 100% no longer do
* Image and rulers no longer 'jitter' when resizing the window
* Installer wording for 'Replace Paint' was changed to be more accurate
* Plural EXIF tags are now preserved correctly
* When saving an image that supports EXIF, the 'Creation Software' is now set to 'Paint.NET'
* Some input bugs were squashed
* The 'dancing mouse cursor' bug is fixed
* The 'Mosaic' effect was renamed to 'Pixellate'
* Splash screen is now shown when launching and opening an image
* Many other bug fixes

Don't need a new thread every time a new version is released.Threads merged

Changelog:
# Installation via Group Policy now works
# New Bitmap images made via Explorer now open correctly as blank 800x600 images
# Fixed the infamous paintbrush rendering bug
# Lasso selection does not "close" the outline until the user releases the mouse button
# Unchecking the current layer's visibility deselects it
# Floating forms remember opened/closed state between sessions
# Saving/loading of .PDN images is much faster, especially on dual/multiprocessor systems
# Upgraded file format to accomodate very large images (prerequisite for later 64-bit support)
# PaintDotNet.exe is now down to 544KB (version 2.0 was about 1100KB)
# Many miscellaneous performance and stability fixes

* Now uses .NET Framework 2.0
* Full support for 64-bit processors, both x64 and Itanium (32-bit also
* Supported, of course)
* UI has been aesthetically upgraded (new icons, toolbars, etc.)
* Layer ordering has been flipped "right side up" in the UI
* Layer composition engine is now correct, and also much faster
* Seven new layer blend modes: Color Burn, Color Dodge, Reflect, Glow,
* Overlay, Negation, and Xor
* Checkerboard "transparency" background is now rendered in screen
* Coordinates so that it does not scale with the zoom level
* Pixelate effect is now much faster
* Ability to choose language during setup

* Fixed a crash under Windows 2000
* New "Curves" adjustment for editing the color curves of an image
* UI elements that are drawn on the image canvas are now visible if they go outside the canvas boundaries. This includes the nubs/handles for the Move tools, Line/Curve tool, and the selection outline

* Optimized Move Selected Pixels tool: its history data is saved in a background thread, it only has to save half as much as it used to, and it is now much more responsive as a result

* Optimized performance and memory usage of Paintbrush, Eraser, and Pencil tools
* Optimized performance of Paint Bucket and Magic Wand tools
* Optimized startup performance
* Mouse wheel zooming now centers on where the mouse is located
* Mouse wheel zooming is now more granular/smooth
* Line/Curve Tool 'nubs' can now be hidden by tapping the Ctrl key
* Pressing Enter or Esc now finishes a selection with the Move tools
* Fixed a Paintbrush Tool crash
* Fixed a Rotate/Zoom bug
* Fixed many bugs related to scrolling and zooming
* Fixed some layout bugs related to the Layers form
* Fixed some keyboard/mouse input and focus issues with the toolbars
* Fixed printing transparent regions showing up as black instead of 'transparent' (white) on paper